Justin Bieber’s perfume sold to Elizabeth Arden: is he being ripped off?
JUSTIN Bieber’s perfume, Justin Bieber’s Girlfriend, has been sold to the company Elizabeth Arden. All seems fair enough on the face of it, brands change hands all the time.
However, there’s a little wrinkle to it. The company which used to distribute it, Give Back Brands, is supposed to be a non-profit. And as far as we know it’s not just the profits of the manufacturing company, but also the profits of the personality behind the brand, which are given to charity.
However, Elizabeth Arden is not a not for profit company, far from it:
NEW YORK, NY, Jun 12, 2012 (MARKETWIRE via COMTEX) –Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced that it has acquired the global licenses and certain related assets for the Justin Bieber and Nicki Minaj fragrance brands from Give Back Brands.
Someday, the first fragrance from global phenomenon and internationally acclaimed superstar Justin Bieber, launched in Spring 2011 and became the number 1 women’s fragrance launch of 2011 in U.S. department stores, according to NPD. The second fragrance, Justin Bieber’s Girlfriend, is launching in U.S. department stores in the summer of 2012.
Breakthrough artist Nicki Minaj, recently voted by Teen Choice as the Best R&B/Hip Hop Artist in 2011, established herself on the music scene in 2010 and has won numerous BET, AMA and MTV awards. The first fragrance from Nicki Minaj is scheduled to launch at U.S. department stores in the fall of 2012.
Terms of the transaction were not disclosed. The Company expects the transaction to be accretive to earnings beginning in the first half of fiscal 2013.
As you can see, they expect to be making profits from hte beginning of the next financial year from the deal.
It’s all made a little more mysterious by the way that most of the executives from Give Back Brands all seem to be ex-Elizabeth Arden employees.
It’s really a little mysterious when a brand moves from a not for profit to a for profit company: and as we’ve no idea what price was paid we really just don’t know whether the likely future profits were handed over to the chairty in one lump sum or not.
Photo – more on her here.
Posted: 13th, June 2012 | In: Celebrities, Money Comments (5) | TrackBack | Permalink
